Perspective: Why The Housing Market Will Crash Again - HOUSE

With the dawn of a new year at our doorstep, there is a dark and gloomy shadow over the housing market. In a recent article, CNN reported that the number of homes on the market in October of 2010 was 50% higher than the same month in 2009. Further, sales of homes are down 25% over the same months.
Now we all know with the housing bubble bursting in 2006-2007, there were just too many people that were over extended on mortgages when sales and pricing declined. And the country was absolutely ecstatic when new leadership was elected, and took office in 2008. Now here we are at the end of 2010 and moving into 2011, and we are on the verge of another huge slump in the housing market.
So the obvious question is...what happened?
I mean, there has to be an answer, right? Well, there always is. An apart from the hard data, I believe it is easy to see with the massive extension of government, exorbitant spending, new laws and restrictions in the market place, combined with increasing taxes has placed a choke hold on the real estate market.
What the general public has to realize is this...There is NO FREE MONEY!

If the government gives money to the people (it's generally done through a "stimulus" which ultimately just gets wasted, instead of sending money directly to the people), they have to pay it back somehow. And in order to fulfill the service on that debt, they have to raise taxes. There's just no two ways about it, increased government spending means increased taxes on the people. And increased taxes on the people means that you and I have less money to spend, therefore we will buy less, which ultimately means that the economy declines.
And that is exactly the situation we have now, and why I agree with the numbers and outlook presented by CNN. We're headed for another substantial decrease in the housing market, and more misery for the typical American citizen. It's take to wake up, elect officials that will put the people's best interest first, which means officials that reduce the size of the government, cut spending, cut taxes, and allow business to proceed as it will. If we can get free enterprise back, the housing market will skyrocket!